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COPYRIGHT DEPOSIT. 



THE HEYMAN SYSTEM 




BY 

EMANUEL SYLVAIN HEYMAN 

CHICAGO 



Copyright; 1911 

By 
Emanuel Sylvain Hdymin 



©CU2S9255 



Of this book there has been printed two hundred 
and fifty copies for private circulation only. 
Of which this volume is No. / Q I 

t 





THE 

HEYMAN SYSTEM 

By EMANUEL SYLVAIN HEYMAN 

w 

A SCIENTIFIC TREATMENT 
OF ENDOWMENT INSURANCE 
AND PENSIONS FOR THE 
PROTECTION OF THE EMPLOYE 
AND HIS DEPENDENTS, IN 
CASE OF TOTAL DISABILITY 
THROUGH SICKNESS OR 
ACCIDENT, PREMATURE 
DEATH AND SUPERANNU- 
ATION, AND FOR THE 
ESTABLISHMENT OF PER- 
SISTENCY AND CLOSER 
RELATIONSHIP BETWEEN 
EMPLOYER AND EMPLOYE 



Copyright by Emanuel Sylvain Heyman 
Chicago jriHHBHgL 9 1 1 



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ff 



CK, 



TO MY FRIEND 
THOMAS A. BUCKNER, ESQ. 

VICE PRESIDENT OF THE 
NEW YORK LIFE INSURANCE COMPANY 

"D ECAUSE of the great esteem in which 
■*^ I hold him, consequent upon a de- 
lightful friendship and association in the 
cause of Nylic during the past nineteen 
years, and because of his unselfish and 
friendly interest in whatever modest suc- 
cess I may have achieved, and in particular 
because of his kindly encouragement 
and helpfulness during the many trying 
months consecrated to the creation and 
development of this System, this book is 
affectionately dedicated. 

Emanuel Sylvain Heyman. 



TP 



Introduction 

HE trend of the times happily shows that 



■ men are looking forward, not backward; 
upward, not downward. Even in looking 
downward it shows that the mind back of the eye 
can more readily see in the coagulated filth that lies 
in the pools, the reflection of the clear, blue sky. 
There is an awakening in the hearts of men, showing 
wherein the evolution lies, — a growing tendency 
towards an altruistic development in their considera- 
tion for the other fellow, — a brushing aside if you 
please, of the slogan, "sauve qui peut," which left the 
poor devil in the rear to be fed to the hungry wolves, 
and his miserable bones to the sufl^ering dependents 
to keep alive the memory of the dear departed, who 
did the very best his circumstances would allow, and 
could do no more; — leaving society, or possibly the 
State, to assume an additional responsibility. 

This great country is so young, and opportunity 
so prolific in the minds of those who can see, that it 
has been standing behind the trees, or hanging 
around the corners ready to hold up men as they 
rushed by in their mad struggle for the elusive 
dollar; so they have really not had the time to pause 
and take a look into their own hearts, — or give a mo- 
ment's thought to the myriads of poor fellows who 

[5] 



kept in the middle of the road, afraid of the trees 
and the shadows which lurked at the corners for fear 
of being held up, even by opportunity, — until now, 
becoming satiated and plethoric with success, they 
sit back sipping their creme de menthe, and in the 
blue vapors of their perfectos, find that further re- 
lief, or remorse, whichever comes from retrospection. 

It doesn't matter much whether Smith made his 
money by squeezing Brown and his friends, because 
Brown and his friends were laying for Smith, and 
possibly thought they had him, until, — well so long 
as Smith's money is put to holy uses and spreads 
relief and peace and comfort along worthy channels, 
his money is sanctified; notwithstanding the state- 
ment of brother Brown to the contrary, who says, 
"taint!" 

There is some good in all men, — to quote 
Joaquin Miller, who says, — 

"In men whom men pronounce as ill, 

I find so much of goodness still; 
In men whom men pronounce divine, 

I find so much of sin and blot — 
I hesitate to draw the line 

Between them two, since God has not." 

But there are so many good men in these great 
United States that we know everybody will be taken 
care of in due course. When we contemplate the 
splendid deeds of Carnegie and Rockefeller, Pearson 
and Rosenwald, — we are compelled to take heart 
and courage in our hopes for the future The gen- 
eral uplift until now however, has been almost 

[6] 



wholly devoted to those who were of little or no 
help to themselves or to the community, — but con- 
sideration to only a very limited degree has been 
given to the wage-earner; the man who fills to the 
full his particular mission, that is in performing in- 
telligently the task for which he is paid, — or under- 
paid, whichever you please. I mean that higher 
class of wage-earner such as bank clerks and the 
higher mercantile and industrial employes; men 
whose position and responsibility compel a higher 
morale and who must on a very meager compensa- 
tion maintain a certain degree of respectability and 
live up to certain social obligations, which makes it 
practically impossible for him to set aside the nec- 
essary amount for that proverbial "rainy day," or 
to make sufficient provision for Mary and the baby 
should he be prematurely called away; — I say, what 
of him? — that's the problem. Like every true 
American, he has dignity and a certain degree of 
spirit and pride which will resent any suggestion of 
charity or paternalism, which is practically analogous. 
In England, Germany and France, the Govern- 
ment, to relieve itself of the burden of building and 
filling poor-houses, makes it obligatory for every 
wage-earner, male and female, to contribute certain 
specific sums every pay-day towards a fund, which 
is taken charge of by the State; — the employer be- 
ing compelled to contribute a sum equal to twice as 
much as the employe, and the Government contri- 
buting a sum practically equal to the combined sums 

[7] 



of employer and employe, until they shall have 
attained the age of 65 years, when they are retired 
upon a pension for life. Of course these pensions 
must of necessity be small, yet are commensurate 
with the needs of the annuitants, which are so mod- 
est that it requires but a very small sum to care for 
them. For this and other obvious reasons, this 
system could not readily adapt itself to the needs of 
that higher class of wage earners in this country. 

In Australia, the Government makes it incum- 
bent upon every man entering its service, to have an 
Endowment policy issued upon his life, for a sum 
equal to at least one full year's salary or more, which 
policy is deposited with the Government, who in 
event of his failure to pay his premium when due, 
pays it, and deducts same from his salary. This is 
done so that no man shall leave its employ empty- 
handed, — so that he is compelled to set aside a cer- 
tain sum annually which will relieve the Govern- 
ment of both the stigma and expense of being com- 
pelled to care for him when he leaves its service, or 
bury him should he die without sufficient means. 

In a conversation with some of the Officials of 
several prominent banks, and other corporations, I 
was informed that there was little or no doubt as to 
the obligation which would rest upon the institution 
if some of their employes should die; the fact being 
they would have to be buried by them. 

Surely a pitiful commentary, but nevertheless, a 
painful truth; — these facts are verified in a measure 

[8] 



by a statement made by Professor Charles B. Spahr, 
of Columbia University, who some few years ago 
made an Official investigation of 10,000 adults who 
died in the last three months of the year, in King's 
County, New York, one of the richest counties 
in the country. He found that 6,600, or 66% of 
them, died without leaving one penny; — 2,600, or 
26% of them, died leaving estates of less than 
^1,200, and only 800, or 8% of the total number, 
left estates of ^1,200 and over, the bulk of which 
were in life insurance. 

The urgent need of some drastic measure for 
the relief of the situation is most apparent; not only 
for the benefit of the employe and his family, but 
for the benefit of the organization. As all good is 
reflective, thus the good which an institution renders 
its employes, comes back manifold in the strength- 
ening and betterment of the organization. 

Increased salary will not wholly solve the prob- 
lem, as is evidenced by the experience of the 
New York Life Insurance Company. Some years 
ago, when Mr. George W. Perkins was Vice- 
President of the New York Life, he devised a 
system called "Nylic," which made provision for 
the agent during various periods, working up to a 
conclusive period of 20 years, when he would be 
retired upon an annuity which he himself created by 
the measure of his own endeavor. This served to 
eliminate from the ranks the irresponsible agent, and 
consequently, the irresponsible business, both of 

[9] 



which were a great loss to the Company, to the 
agent, and the policy holder. It has been the means 
of developing and building up an organization 
second to none in the world; an organization which 
is concrete and persistent, and which only seeks and 
places the very best character of business upon the 
books. Even in the face of the fact that the com- 
pensation of the agent has been through legislation 
very materially lessened, his loyalty and persistency 
have remained stanch. Still the additional obliga- 
tion which "Nylic** entailed has been the means 
of not only accomplishing the aforementioned bene- 
fits, but has greatly reduced the general expense 
which has grown lower each year, until now the com- 
pany is doing business on the smallest ratio of expense 
of any one of the 170 Life Insurance Companies 
doing business in this country. An extract from 
the Official Report made by the Hon. Nelson B. 
Hadley, of the Insurance Department of the State 
of New York, states : 

"The New York Life Insurance Company, during the recent 
crucial years, has been able to hold its Agency force intact to a 
remarkable degree. The Company's so-called "Nylic" System 
is responsible for this to a large extent, if not wholly so ; — the 
system being built up around the idea of loyalty and persistency. 
An agent is rewarded in accordance with his worth to the Company 
and his loyalty and persistence in its services. The benefit to the 
company is three-fold. It provides a more economic plan than the 
renewal commission basis. It makes the interest of the Company 
the interest of the Agent, and wins for itself a reputation for reliability 
and responsibility in each community where the persistent agent is 
located. No other factor in my opinion, has contributed more to 
the economical management of the Company, than its '*Nylic.** 

[10] 



It was in consequence of the successful operation 
of "Nylic" that the hope was conceived of creating 
a system for the uplifting and development of a 
higher efficiency among employes, — the establishing 
of a closer relationship between employer and 
employe, which might inure to the mutual profit of 
both, that the writer has given considerable time and 
study to the plan which he has the honor of 
presenting under the title of the " Heyman System. " 



[II] 



How Can This End Be Best Attained? 



It can only be accomplished by co-operation — the theme of 
the hour — me for you, and you for me, and each of us for the 
one cause, and the ones we love. Co-operation is the very spirit of 
Life Insurance, standing as a bulwark of safety back of the individual 
in his weakness, and symbolizing the infallible truth — * 'United we 
stand — Divided we fall.'* 



An Increased compensation of itself equal to 
four or five times the sum required under "the 
system," will not accomplish the result nor 
solve the problem of the moment as effectively, 
satisfactorily, or economically as the plan herewith 
presented, — because in the first place, the relief is 
only temporary. For instance: Brown's wife is 
discontent because Mrs. Smith who lives next door, 
in consequence of Smith's ability to earn a greater 
salary, dresses herself and the children just a little 
better than the Brown family; they have a few more 
conveniences at home, and a little better time gener- 
ally, and so Brown gets this for breakfast, and in the 
evening for dinner. Sometimes he hears it on retir- 
ing — and possibly wakes up with it in the morning; 
therefore is not always in a state of mind conducive 
to efficient work. 

Presuming for illustration, however, that his 
salary is increased three, four, five hundred dollars 
per annum (it really does not matter which, be- 

[12] 



cause whatever increase within reasonable possibilities 
may come to him will be immediately utilized in 
working up to the Smiths' social status — and 
perchance go them a few points better), the end of 
the year will find no more money on hand to pro- 
vide for that rainy evening than he had before the 
advance, and so it is likely to continue from year to 
year — but they will have had more fun, and satisfied 
their longings — and the chances are that if Brown 
should be stricken with illness, or laid low by acci- 
dent, or possibly called away from his little ones 
forever, the boys at the office would have to pass 
the hat just the same, and his employers would 
possibly add a sum equal to the whole amount 
collected by his colleagues, to take care of him — 
or bury him and leave enough possibly, to the 
bereaved widow and the babies, to take care of them 
for a month more. 

If on the other hand the employer will make 
provision for the employe, contributing the greater 
part of the cost, leaving but a trifling part 
of it to be contributed by the employe, even 
though the gross sum contributed might not exceed 
one-fourth of the presumed increase in salary, 
the difference in effect to all concerned would be 
clearly manifest. The one might please the mind — 
the other would strike deeper, it would find a refuge 
in the heart; because in the first place, it gives the 
employe recognition and a standing — it assures him 
of the security of his future, which is in his own 

[13] 



hands like clay to be molded into such form as his 
energy, ambition and fidelity shall shape it. And as 
the woman is invariably the influence behind the 
man for good or ill, so does she become at once the 
champion of that employer who finds time and 
thought for her and the little ones — who makes a 
provision for their old age — who gives the employe 
the chance of being a part by contract, of the plan 
which not only compels him to set aside for the 
future a sum which, with the employer's contribu- 
tion, will guarantee him the certainty of a fixed sum 
of money, but will give him the further option of 
converting the same into a life annuity, if he so 
desires, which will take care of him and his for 
the remainder of his life; — in the meantime making 
liberal provision for his family in the event of his 
premature death and caring for him in the event of 
his total disability by reason of accident or illness. 



[14] 



Extract from an Address delivered before the 
National Civic Federation at the Astor House, 
New York, November 23,1 909, on the subject of 

LIFE INSURANCE 

AND THE MORAL 
OBLIGATION OF EMPLOYERS 

By the HON. DARWIN P. KINGSLEY 

President of the New York Life Insurance Company 



"The efficient employe, in specialized labor, has 
a fair claim to something beyond the returns con- 
tained in the ordinary contract of hiring. This 
right may be strengthened and its realization ad- 
vanced, but it cannot directly be met, in this country, 
by governmental action. The capable worker 
deserves and should demand a program of hiring 
under which he shall be entitled — and entitled by 
contract, not wholly by the grace of his employer — 
to certain protection for his family if he dies pre- 
maturely, and to certain protection for himself if in 
the vicissitudes of industrial war he is shelved and 
wholly or in part compelled to join the dependent 
class. 

"There are sound reasons why corporations 
should avail themselves in this work of the highly 
developed system of insurance and annuities pre- 
sented by the responsible insurance institutions of 

C15] 



this and of other States. Any effective system if 
established by corporations independently, will be 
based on the principles and methods used by the 
insurance companies, and therefore the work for 
obvious reasons is in the end likely to be more 
effectively and more economically done by men who 
are experts and specialists than by men who under- 
take it with no special training and with minds 
chiefly occupied by the demands of other lines of 
work. 

"The function of life insurance and of other 
types of insurance on the one hand, and the obliga- 
tion of the employer of labor to his employes on 
the other, bear, it seems to me, an identical relation. 

"Life insurance is already effectively at work. 
While the employer of labor has only in the most 
limited way used the idea or appreciated its benefi- 
cence, progress has been made toward the solution 
of this problem. The energy of life insurance 
management, in other words, and the obligation 
which the laboring man feels toward his family, have 
in their development far outrun the sense of obliga- 
tion of the employer. We have now reached the 
point when the employer is beginning to do his 
part, — but as yet he has only made a beginning. 
That he will do more is certain; that he will do 
much is almost equally certain. That existing 
insurance institutions will be utilized is, I believe, 
a necessity." 

[i6] 



-'Each humane thought that tempers strife. 
Spreads good from its prolific seed;-r— 
So doth the good men do in life 

Reflect like good for such good deed. " 



IT is clearly evident that the evolution of con- 
ditions makes it imperative that the wage-earner 
should be considered beyond his weekly stipend, 
and it is becoming more and more obligatory for 
Capital to consider Labor — for the Employer to 
consider the Employe; so that the institution having 
the foresight to anticipate these coming events by 
taking the initiative, will certainly find it immensely 
to its advantage. 

Therefore, there is an essential need of devising 
some means by which these important problems may 
be overcome, and overcome in a manner which shall 
be not only beneficent and humane, but preservative 
as well of the interests of the business, in getting the 
best that is in men, and holding them persistently in 
its service. This bringing of the wage-earner and 
capital, the employer and employe, in closer rela- 
tionship, creates a community of interests of the very 
highest standard, because under such conditions 
both the employer and employe aim for the highest 
ideals — each for the other; and both for the one. 

Men are human and selfish, and invariably have 
one ear to windward waiting for the opportunity to 

[17] 



shift to some other position where they may get a 
little higher compensation, and possibly at a time 
when they are most needful to the institution. The 
proposition embodied herewith will not only hold 
men to their trust, but will stand for the higher 
efficiency and fuller development of the underlying 
forces in them, — which they, even striving to do the 
best they can, may be unconscious of. It will serve 
as a stimulant for all that is good in them. It will 
develop enthusiasm and will elevate them through 
these meatns to the very highest point of endeavor, 
wherein the heart is touched with gratitude by the 
voluntary consideration on the part of the employer 
for their future and the welfare of their dependants. 

Numerous plans have been devised, and in prac- 
tice among different institutions, particularly among 
the Banks in Canada and in certain institutions in 
Chicago, providing for pensions only when the 
employe shall have arrived at the age of 65 years, 
giving him the option, however, of availing himself 
of it at the age of 60 under certain conditions and 
restrictions, with no benefits prior to fifteen years 
of constant service, and without any provision for 
his family in event of his premature death. 

For these as well as various other reasons, the 
system is incomplete. It fails to engender that 
spirit of enthusiasm which quickens a man's step 
and makes him assume the initiative in his effort, 
without further coercion. Some of the Banks in 
question that have had long years' experience, are 

[18] 



beginning to realize the difficulty in carrying the 
plan through, because even in the face of the cost 
to the employe, and the greater amount which the 
Bank must set aside to make provision for the 
future, they are confronted at this early date with its 
inadequacy, although advances have had to be made 
prior to this time. 

It places, in addition, a burden upon the Bank 
which is apt to lead to complications and expense 
greater than has been contemplated, and the uncer- 
tainty of its benefits is manifest in the conditions 
prescribed in their system, which reserves to the Bank 
the right to demand increased contributions from the 
employe, and a possible lessening of the pension. 

To quote from a statement made by an Official 
of one of these institutions: 

** After many years of experience we still find our- 
selves sailing in strange waters without a compass, the 
burden growing heavier, and more dubious with time. 

"In the first place, it will be an impossibility to 
continue for less than a total cost of i6 per cent — 
4 per cent of which to be contributed out of his 
salary by the employe, and at least 1 2 per cent by the 
Bank. Even with these figures, we are presuming 
upon the final issue, it being not at all certain that 
they may not have to be again increased, with a 
further possibility that the pensions may have to be 
lowered, so that this advance is rather an expediency 
than a solution of the situation. 

"In my opinion, an insurance proposition assumed 

[19] 



by a reliable Insurance Company, can best solve the 
problem." 

Another institution had to call in an Actuary at 
a great cost, to disentangle a very complex situation, 
and separate the pension scheme entirely from the 
Bank, creating a separate company, with separate 
officers to conduct it, corroborating the experience 
and the opinion of the foregoing Bank, in fact 90% 
of all similar schemes have proven dismal failures. 

For these reasons, the statement made by the 
Hon. D. P. Kingsley in the foregoing article, proves 
conclusively, "Any effective system, if established 
by corporations independently, must be based on the 
principles and methods used by the Insurance Com- 
panies, and therefore the work for obvious reasons, 
is in the end likely to be more effective and more 
economically done by men who are experts and spe- 
cialists, than by men who undertake it with no special 
training, and with minds chiefly occupied by the 
demands of other lines of work." 

The only feasible plan therefore, is through 
Endowment Insurance, where the risk is assumed 
by a responsible Insurance Company, thereby reliev- 
ing the Bank of all of the detail and burden for 
which it would be difficult for them to make proper 
provision. It will cover every phase of the situation, 
bringing protection and relief to the employe from 
the very beginning in the event of total incapacita- 
tion through sickness or accident, premature death, 
protection in old age. 

[20] 



An example in saving is all that is essential — 
for saving to the thrifty man offers as great a 
fascination and recreation, as spending to the spend- 
thrift; particularly where the nucleus of a saving fund 
is established by the Bank for its employes for their 
further encouragement in thrift. The employe 
being thus arbitrarily compelled to set aside a given 
sum from his salary each year, finds a pace for 
saving which grows on him, and if at all extravagant, 
tends rather to change his method to a frugal one, 
and gives him something tangible to look forward 
to. It inspires him and upUfts him — it instills 
courage and hope, loyalty and enthusiasm, in the 
contemplation of his future — in the positive 
assurance against all peradventure of doubt that he 
will receive a fixed sum of money at a given time, 
which cannot fail to come to him or his in its fulness 
at a time of life when it may be most needful to 
him. It brings out the best that is in him in 
efficiency, in integrity, and elevates him to a standard 
of higher ideals. He works with his heart, and is 
faithful to his employer, and persistent in his service. 

The ultimate cost of the system will be materi- 
ally reduced (i) by the contributions on the part of 
the employe, (2) by the dividends which revert to the 
Bank, (3) by the cash surrender value of the policies 
of those who resign either voluntarily or involun- 
tarily. In addition to these sources of revenue there 
will be the further saving in gratuities — sick and 
death benefits — and the further elimination of the 

[ai] 



use of surety bonds which is invariably suggestive of 
the employe's duplicity — whilst an endowment 
policy on his life not only covers the Bank for any 
shortcomings, but appeals to his better self — all of 
which is more specifically submitted in the system 
which follows : 



[22] 



"The System 



yj 



To THE Officials and Employes of the 

William Doe National Bank: 

Your Board of Directors, appreciating to the 
fullest extent the splendid services rendered by you, 
and your fidelity to its interests which has in so 
great a measure contributed to its success; and 
bearing in mind your future well-being, and the 
time when age shall interpose and claim relief for 
you from the arduous duties to which you have 
devoted years of strength, desire to make such 
provision that you may be enabled during the 
remaining years of you life to enjoy in peace the 
fruits of your life's activities, — and in further 
expression of their pleasure, they hereby 

Resolve: Upon certain considerations and 
gratuities to encourage your continued loyalty and 
fidelity to the Bank's interest, and to extend to all 
employes who shall serve persistently and faithfully 
in the Bank's employ throughout such period as is 
hereinafter specified, the following: 

The William Doe National Bank will, under 
conditions hereinafter stipulated, cause to be issued 
upon the life of such employe, an Endowment policy 

[23] 



for such an amount as will approximate 

salary; the insurance increasing automatically with 
every advance of One Hundred Dollars or more 
in salary per annum, in the same ratio 

but at the then tabular rate of the age of such 
employe at the time such insurance is increased; 
said policy maturing and payable for its full face 
in Gold Coin when he shall have approximately 

attained the age of- The Bank, in 

fulfillment of its resolution to further help and 
encourage thrift and savings, loyalty and persist- 
ence, will contribute annually towards the payment 
of such policy, a sum that will reduce the net annual 

cost to the employe to of the 

annual premium, to be paid in such instalments as 
will least inconvenience him; — the Bank further 
agreeing in the event of such employe's total and 
permanent disability by reason of sickness or accident, 
to waive all further contributions by the employe 
towards the payment of his premium, and to help 
and benefit him further; — all of which is more 
specifically recited in the following: 

(a) The William Doe National Bank further 
agrees that if the death of such employe shall occur 
at any time following the date of this Agreement, 
which shall be set forth in his Certificate, and while 
said employe is in active service of the Bank, and 
whilst any of said annual instalments remain unpaid, 

[24] 



to cancel such obligations and to pay the full face of 
his policy in one sum to his wife, or such beneficiary 
as he may designate; provided, however, for the fur- 
ther protection of the interests of such beneficiaries, 
that the sum due under the terms of said poHcy 
shall be payable to the William Doe National Bank 
as Trustee, but for the exclusive use of the benefi- 
ciaries designated; said sum to be paid by the Bank 
to such designated beneficiaries in full, or in annual 
instalments, or in such manner as said Bank in its 
discretion may determine, and subject to the further 
stipulations as described in Articles b, c, d, e, f, g, h, 
i and j. 

(b) If after a period of one year, and within five 
years from date of this Certificate, total disability 
shall ensue and such employe shall become wholly 
and permanently disabled by bodily injury or by 
disease of any kind so that he is and will be per- 
manently and continuously prevented thereby from 
performing any work for compensation, then all of 
his subsequent premiums shall be waived, and the 
William Doe National Bank will, in addition to 
this waiver, advance to him out of its general Fund, 

a sum equal of his salary during the 

period of such incapacitation, and until the total 
sum thus advanced shall equal the full amount ot 
his Certificate, which shall be charged against his 
policy ; provided, however, that if said employe shall 
be at least 40 years of age and over, the sum payable 
to him shall be of his salary, in lieu of 

[ 25 ] 



- as is herein specified. Should death 

occur while any balance remain, same shall be paid 
in one sum to his wife, or such other beneficiary 
as he may designate, when all further payments,' 
together with this Agreement, shall cease and deter- 
mine; — notwithstanding, the Bank shall not be 
deprived of its right upon satisfactory proof that 
such employe shall have been restored to health 
insofar as to be able to perform any work for gain 
or profit, to assign him to such work, and to demand 
payment from such employe for his subsequent 
premiums as stated above, but only as they shall 
subsequently fall due. 

(c) If after a period of 5 years, and within 10 
years from date of this Agreement, the same condi- 
tions shall obtain as in the foregoing, the Bank will 
extend to him all of the $ame,fConsiderationsias are 

specified in "e," exceptithat a suni /equal to..^—*; i- 

of his salary be paid in like mannen.an lieu of 

as in "e," provided, however, that if saidi 

employe be at least 40 years of age and overj the 

sum payable to him shall equal ofihis 

salary in lieu of as is herein specified. 

(d) If after a period of 10 years, and within 15 
years from date of this Agreement, the same condi- 
tions shall obtain as in the foregoing, the Bank will 
extend to him all of the considerations as are speci- 
fied in "e," except that a sum equal to be 

paid him in like manner, in lieu of- as in "e;" 

provided, however, that it said employe shall be 

[26] 



at least 40 years of age and over, the sum payable 

to him shall be of his salary in lieu of 

- ..as is herein specified. 

(e) If after a period of 15 years, and within 20 
years from date of this Agreement, the same condi- 
tions shall obtain as in the foregoing, the Bank will 
extend to him all of the considerations as are speci- 
fied in "e," except that a sum equal to be 

paid him in like manner, in lieu of as in "e'*; 

but should he be living at the end of 20 years 
from date of this Agreement, — or the maturity of 
said policy, and any balance of said fund still remain, 
same shall be paid to him in one sum, and this 
Agreement shall thenceforth cease and determine. 

(f) If such employe be living and in the service 
of the bank at the maturity of his policy, the full 
face of said policy shall be paid to him in one sum 
in Gold Coin, less all indebtedness to the Bank, 
when this Agreement shall cease and determine. 

(g) If such employe shall be in good physical 
condition, he may, subject to the Bank's option, 
continue in its service as theretofore. But if he 
desires to retire upon a pension to begin at either 

of age, he may continue in its service, 

subject to the option of the Bank, by returning to 
the Bank the full proceeds of his policy to be held by 
them as a part of its Contingent Surplus Fund, and 
shall contribute out of his salary annually, a sum 
commensurate with his age and salary, and based upon 
his average salary during the ten years preceding his 

[27] 



superannuation, which will purchase for him a 
generous pension with said proceeds of his policy 
together with his contributions. In event of 
his death following his period of superannuation, 
one-half of the pension received by him shall be 
paid to his wife for life, or in event of her remar- 
riage, to be paid to his children provided they are 
under 1 8 years of age, after which period all pay- 
ments shall cease. 

(h) Should such employe die before having 
attained his period of superannuation, then the pro- 
ceeds of his policy together with such contributions 
as he shall have made, with interest thereon, shall 
be held in Trust by the Bank, but for the protection 
and exclusive use of his wife and children, or such 
beneficiary as may be designated. 

(i) Provided, however, that no employe shall 
be eligible to the benefits proposed in this prospec- 
tus who shall not have been in the service of the 
Bank for at least one full year or more, but such 
employe who may be eligible under the rules shall 
reserve the right unto himself to accept or reject 
this proposition. He may reconsider his decision, 
but if his reconsideration shall be later than the date 
on which all of these Contracts take effect, he shall 
not be eligible to its benefits until the first anniver- 
sary following; — so as to eliminate the confusion 
consequent upon the variation of dates. 

(j) If any such employe shall leave the service 
of the Bank of his own volition at any time whilst 

[28] 



this Agreement is in force, then in consideration ot 
such protection and disability benefits which shall 
have been vouchsafed to him and to his estate, all 
payments made by him shall have been fully com- 
pensated for by reason of the foregoing, and such 
payments shall revert, together with the Cash Sur- 
render Value of his policy, to the general fund, to- 
gether with such dividends as the Bank shall receive 
from time to time on said policies; notwithstanding, 
the Bank shall not be arbitrarily deprived of its 
discretionary power to make such return to such 
employe as in its judgment may be deemed advis- 
able, or to re-assign to him if he so requests, said 
policy upon payment by him in cash to the Bank, a 
sum equal to the Cash Surrender Value so stated in 
the policy ; but, should such employe be discharged 
from further service, then such payments as he shall 
have made towards this Agreement, shall be returned 
to him, less all liabilities and indebtedness to the 
Bank not specified herein, but not until the first anni- 
versary following his discharge, and this Agreement 
shall thenceforth cease and determine; notwithstand- 
ing, the Bank shall upon request of such employe, 
re-assign to him said policy upon payment by him 
in cash a sum equal to the Cash Surrender Value so 
stated in the policy, less the total amount of 
premiums paid in by him toward said policy. 



[29] 



Witness our hand and corporate seal this, 
day of. . , 191 1. 



President, 
Secretary, 

I hereby accept the foregoing: 



Accepted in the presence of: 



GOPYRIGHTED.flHHHHldll* Emanuel Sylvain Heyman 



[30] 



The Afterglo^v 



An old man sat upon his porcL, 

His lovea ones all were gatnereJ near; — 
His face was radiant witk the torck 

Of youtL, good ^viU and ^vIlole8ome cbeer. 

His eyes were sparkling w^itn a gleam 
Of joy, contentment and of peace; — 

His heart bad realized its dream 
To live Lis evening life at ease. 

Ine pledge made to mm years ago 

By those ne served with loyal vim, — 

He wanted all tlie ^svorld to know 

^A^as kept in Faitn and Trutk witk kim. 

His soul m fulsome gratitude 

Xo God, burst fortk m song of praise. 
Tkrougk tkrift ke lives in plentitude 

A.nd comfort, kis remaining days. 



]^Y zb iiin 



One copy del. to Cat. Div. 

MAY 2% ^S!l 



LIBRARY OF CONGRESS . 



019 566 877 2 



